In November, private sector credit growth stood at 8.2%, the lowest in recent years and 6.6 percentage points lower than the 14.8% target set for fiscal 2020-21Businesses hardly had any demand for credit in 2020. Between February and June, private sector credit growth consistently dropped when the global pandemic was in its ominous form. However, the private sector credit growth has picked up from July to September due to stimulus packages implementation, he added. The adjustment of interest and rescheduling of the existing loans might be the reasons behind the uptick in private sector credit growth past the 8 per cent-mark, he said. “The private sector credit growth would not increase much until March next year as our economy and businesses have not fully recovered,” Rahman said.

Source: Dhaka Tribune December 28, 2020 19:29 UTC